EasyFinancial is a well-established Canadian loan service provider. It is a compelling alternative to traditional lenders and banks. EasyFinancial provides you with a unique opportunity to secure a personal loan despite having a weak credit score.
If you’ve ever tried applying for a bank loan with a weak credit score, then you already know that your chances of getting rejected are reasonably high. Aside from being unable to get much-needed cash, rejection from banks can harm your already-weak credit score even further. This vicious cycle might sound familiar as many Canadians go through the same cycle for years and years.
So is EasyFinancial a way out?
EasyFinancial is not the only loan service provider available in Canada.
In fact, there are many such companies that exist in the financial sector. While competition in a free market is good, the existence of many such lenders has made way to a lot of noise in the market, it becomes more and more challenging for borrowers like you to separate the good from the bad.
To help you with that, we’ll examine EasyFinancial, its personal loan product, and the lender’s pros and cons in this article.
An overview of EasyFinancial
EasyFinancial provides personal loans to people who may be rejected by banks due to their bad credit score.
They are taking a significant risk providing a loan to someone who doesn’t necessarily have the best financial records and they know it. They offer secure and unsecured loans to their customers.
The unsecured loans are available for any amount in the range of $1000 to $15,000. Meanwhile, their secured loans go from $15,000 to $35,000.
So depending on your circumstances, you can take a loan of $1000 to tide you over till your next paycheck or $15,000 for your bigger or longer-term expenditures. That’s an impressive range!
EasyFinancial claims to have flexible loan terms based on the loan type the borrower wants to go for.
The catch with this, however, is that they forget to mention that their interest rates fluctuate wildly too. While it’s always good to have range, their lowest interest rate stands at a reasonable 19.99%—however, their highest interest rate skyrockets to 46.96%, which is spooky.
The financial burden that such a high-interest rate might put on anyone who gets it is worrisome.
However, based on the experiences of many EasyFinancial customers, it seems like most of them get interest rates closer to the lower threshold. As long as you have a good employment record, the chances of you getting a reasonable interest rate are higher.
Also, if you want to know more about the best loan interest rates in Canada, check out Rate Genie.
Am I eligible for EasyFinancial’s services?
EasyFinancial is a loan service provider that is more forgiving than banks. However, that doesn’t mean that the process of getting a loan is easy breezy. If you’re thinking you can just fill in a form and get a loan irrespective of your background, you’re mistaken.
If anything, such providers are more thorough with their eligibility criteria as there is more risk involved. As we have established, EasyFinancial provides two kinds of loans – Secured and Unsecured. Let’s look at the eligibility criteria for both.
Eligibility Criteria for Secured Loans
- A form of collateral – your house or any other assets.
- Yearly property tax statement.
- Yearly mortgage statements.
Eligibility Criteria for Unsecured Loans
- Monthly income of $1200 minimum.
- Stable source of income.
- Proof of legal age as per your province.
- A direct deposit bank account.
Why should I go for EasyFinancial?
This is an important question, especially considering the various loan providers available in Canada.
EasyFinancial claims that their USP is their instant loan approval and instant loan credit services. They do have a right to brag about it, as their approval time can be as short as 30 mins, which is extremely quick.
In addition, if your loan gets approved, the loaned money will reflect in your bank account within the next 48 hours. You also have control over payment frequency. You can do weekly, bi-weekly, or monthly payments depending on your preference and situation.
Are there any potential drawbacks I should be aware of?
Short answer: yes.
If loan service providers delivered all the benefits mentioned above without any drawbacks, then there would be no need to do reviews like this.
That said, the very USP that sounds impressive about EasyFinancial can be a disguised drawback. The issue with EasyFinancial is that its process makes it too easy for people to irresponsibly take out loans.
Because of this lender’s relatively quick and fuss-free loan application and approval process, you’re more prone to irresponsibly taking out a loan without assessing your capability to pay it back.
First-time borrowers might still be skeptical, and so they’ll take out an amount that’s just enough for their needs and within their ability to repay within the stipulated time.
However, as they get their first loan approval within 30 minutes and see the loan amount reflect on their account in two days, they might develop a dependence on the service due to the ease of the process.
This might lead to situations where a borrower ends up with more debts than they can repay.
That said, if you do decide to take out a loan from EasyFinancial, always practice discipline and caution.
Things I need to be careful about
These aren’t exclusive to EasyFinancial, so to speak.
However, it’s important to avoid certain practices when taking out loans from services providers. Keep in mind that EasyFinancial will penalize you for mishaps in your payment, so you might end up having to pay the following fees:
- Delayed payment fees
- Default penalties
- Missed payment fees
What’s the Verdict?
EasyFinancial is easily one of the quickest ways to secure a loan for emergencies and other needs. However, keep in mind that late payment fees and missed payment penalties can be costly. It’s crucial that you plan your loan out and ensure that you can make all your payments on time.
This lending company is an excellent option for you if you have a bad credit score; however, as mentioned before: they are not a charitable organization. Keep that in mind, read through the terms and regulations of your loan, and always practice being a responsible borrower.
They have a fully responsive support team that is always ready to address your queries, so you’d definitely want to make full use of that.